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South Africa Watchdog Approves $900M Sinopec & Chevron Deal

South Africa Watchdog Approves $900M Sinopec & Chevron Deal

Sinopec Corp got a major boost in its pursuit of Chevron’s South Africa and Botswana assets after South Africa’s Competition Tribunal approved, with conditions, the $900 million transaction.

Sinopec was competing for the assets against commodities trader and miner Glencore, which swooped in last October with a $973 million bid following delays to Sinopec’s original agreement.

The transaction is subject to Sinopec investing 6 billion rand ($504 million) over five years to develop a refinery in South Africa’s Western Cape, over and above Chevron’s current investment plans.  The Tribunal also said there should be no retrenchments as a result of the proposed transaction.

As part of the deal, Sinopec will buy a 75 percent share in Chevron’s South African subsidiary that runs the 100,000 barrel per day refinery, a lubricants plant in Durban and 820 fuel service stations and other oil storage facilities.  The deal also includes 220 convenience stores across South Africa and Botswana. Source: Reuters PWKD13032018

Editors Note:  I did raise the issue previously on how Sinopec would operate the the fuel retail network outside of China.

Last modified onTuesday, 13 March 2018 07:50
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